Believe in the good

VIKING

Representative money is money that is backed by a commodity. This money - normally notes - can be exchanged for the commodity backing it.

Fiat money is money that's not backed by a commodity with intrinsic value. Fiat money is backed by the faith of the government that issues it.

We still use representative money today to some degree - just not in the form of paper money anymore. Credit cards are common examples of modern representative money.

An example of representative money is tobacco notes. These notes were issued between the 15th and 18th centuries in America and could be exchanged for real tobacco.